Visited Ooty during a weekend last month and we stayed at Khems. Received decent service even though rooms were a little old in design but was quite tidy. Lobby looks old but looks like it been kept like that for heritage. Check in was quick and reception courteous. Room we were given was a budget on the 3rd floor. Small in size at Rs.900/ per night was actually cozy and comfortable.
Restaurant is good in design and food was alright. Rooms service was quick although hot water was available only in the morning between 7 - 11 we checked in at 2 and it was still organized for us. Looked busy during the weekend and seemed like a popular hotel. I dont know why they have such bad reviews but I had a good experience.